TARGET Instant Payment Settlement
TIPSACTIVEOperator: Eurosystem (Banca d'Italia lead development)
Overseer: European Central Bank (ECB)
Legal basis: ECB Guideline on TARGET (ECB/2022/8)
Launched: Nov 30, 2018
4.74M daily avg (EUR, Mar 2026); 4.16M (Feb 2026); 3.64M (Jan 2026); 2025 full-year: 2.74M daily avg EUR; 2024: 3.68M daily avg (EUR+SEK)
Daily Volume
Mar 31, 2026 · European Central Bank
€5.7B daily avg (EUR, Mar 2026); €5.0B (Feb 2026); €4.5B (Jan 2026); 2025 full-year: €2.17B daily avg EUR; 2024: €0.9B daily avg
Daily Value
Mar 31, 2026 · European Central Bank
14,884 reachable parties; 323 DCAs, 12 ASTAs (euro); 341 total DCAs+ASTAs (EUR+SEK, Dec 2024)
Participants
Dec 31, 2024 · ECB TARGET Services Annual Report 2024
Executive Summary
TARGET Instant Payment Settlement (TIPS) is the Eurosystem's platform for settling instant payments in central bank money, operating 24/7/365. Launched in November 2018, TIPS settles SCT Inst transactions individually in seconds across the SEPA area. It supports three currencies: EUR (since launch), SEK (since February 2024), and DKK (since April 2025), with NOK planned for H1 2028 (Norges Bank agreement signed November 29, 2024; NBO INST to serve as the domestic NOK instant payment service; Norway is the first non-EU EEA country to join a TARGET Service). Bulgaria (BNB) connected January 1, 2026. Iceland's Sedlabanki Islands is assessing feasibility of joining TIPS for ISK settlement (announced September 2024, assessment initially focused on TIPS before T2).
How It Works
Settlement Model
Real-Time Gross Settlement (individual transaction settlement)
Message Standard
ISO 20022 — pacs.008 (routed from CSMs or direct participants)
Max Transaction
€999,999,999.99 (per EPC 2025 SCT Inst Rulebook v1.0, effective October 5, 2025; previously €100,000)
Clearing Mechanism
Direct settlement — TIPS is itself the settlement mechanism. No separate clearing layer.
Settlement Cycle
Continuous 24/7/365 — no batch windows, no cut-off times
Message Flow
An instant payment instruction arrives at TIPS either directly from a participant or via a CSM (RT1, STEP2-T, or national systems). TIPS checks the sender's Dedicated Cash Account (DCA) for sufficient funds. If available, the sender's DCA is debited and the receiver's DCA is credited simultaneously with immediate finality. The entire process targets under 10 seconds end-to-end. Liquidity is managed by transferring funds between the DCA and the participant's Main Cash Account in T2.
Typical Use Cases
Settlement of SEPA Instant Credit Transfers, multi-currency instant settlement (EUR, SEK, DKK), future cross-border instant payment corridors
Key Data
Daily Volume
4.74M daily avg (EUR, Mar 2026); 4.16M (Feb 2026); 3.64M (Jan 2026); 2025 full-year: 2.74M daily avg EUR; 2024: 3.68M daily avg (EUR+SEK)
As of Mar 31, 2026 · European Central Bank
Daily Value
€5.7B daily avg (EUR, Mar 2026); €5.0B (Feb 2026); €4.5B (Jan 2026); 2025 full-year: €2.17B daily avg EUR; 2024: €0.9B daily avg
As of Mar 31, 2026 · European Central Bank
Participants
14,884 reachable parties; 323 DCAs, 12 ASTAs (euro); 341 total DCAs+ASTAs (EUR+SEK, Dec 2024)
As of Dec 31, 2024 · ECB TARGET Services Annual Report 2024
Participants & Access
Membership Requirements
Credit institutions with Eurosystem counterparty status. Also accessible via instructing parties (CSMs like RT1, STEP2-T). Non-euro NCBs may join for their domestic currency.
Governance & Risk
Governance Model
Part of the TARGET platform, governed by ECB Guideline. Banca d'Italia led initial development. Multi-currency governance involves non-euro NCBs (Riksbank for SEK, Danmarks Nationalbank for DKK).
Concentration Risk
TIPS is becoming the dominant instant settlement infrastructure as the ECB promotes central bank money settlement. However, RT1 and STEP2-T provide CSM-level alternatives for clearing, maintaining some competition.
Resilience & Business Continuity
Eurosystem infrastructure with dual-site architecture. 24/7 operations centre. Target availability: 99.99%. Fallback to standard SCT if instant path fails.
Dispute Resolution
TARGET compensation scheme applies. Operational disputes follow ECB procedures.
Pricing
ECB pricing for TIPS is designed to encourage adoption of central bank money settlement for instant payments.
Transaction fee: €0.002 per transaction
Source: European Central Bank
Connectivity
settles
SEPA Inst
TIPS settles SCT Inst transactions in central bank money
liquidity from
T2 / TARGET
Dedicated Cash Accounts funded from T2 Main Cash Accounts
interlinks with
RT1
RT1 routes transactions to TIPS for central bank money settlement
settles
RIX-INST
TIPS settles Swedish instant payments (SEK) via RIX-INST
Peer Comparison
TIPS is unique as a multi-currency instant settlement system in central bank money. FedNow settles in Fed funds (central bank money) but is USD-only. UK Faster Payments settles in commercial bank money via prefunding. TIPS's €0.002 per-transaction pricing significantly undercuts private CSMs.
Compare in detail →Regulatory Framework
230dDec 31, 2026
Digital euro preparation phase
ECB preparation phase for digital euro with concrete pilot timeline disclosed March 2026. Regulation proposed June 2023, awaiting European Parliament and Council adoption. Pilot launch planned H2 2027 on TIPS infrastructure, with potential first issuance by 2029. Pontes DLT wholesale settlement launching Q3 2026.
Intelligence (89)
AnalysisMay 14, 2026
Austria Builds Wero Infrastructure as PSA and RBI Establish Issuing and Acceptance Framework
PSA Payment Services Austria began preparing Wero issuing support in January 2026, three months after Raiffeisen Bank International became the first EPI scheme member headquartered outside the initial launch markets. Austria's entry would extend Wero to a sixth direct market and could open a path to Central and Eastern European merchant acceptance through RBI's regional banking network.
NewsMay 13, 2026
ECB Digital Euro Pilot Application Window Closes May 14 as Eurosystem Targets Up to Thirty PSPs
The pilot is planned to start in the second half of 2027 and run for 12 months. Settlement will flow through the Eurosystem's TARGET infrastructure.
RegulationMay 13, 2026
European Parliament ECON Committee Adopts PSD3 and PSR Texts, Clearing Path to Plenary Vote
ECON approved the PSD3 and PSR final compromise texts on May 5, clearing the last committee hurdle before a full Parliament plenary vote expected during the May 18-21 session. The legislation replaces PSD2 and applies 21 months after Official Journal publication, likely around March 2028.
AnalysisMay 11, 2026
EuroPA Alliance Validates Cross-Border QR Payment Interoperability Between Italian, Portuguese, and Wero Networks
The result moves the EuroPA alliance closer to its production milestones. Cross-border peer-to-peer payments between member schemes are scheduled for 2026. Extension to e-commerce and NFC-based point-of-sale interoperability is planned for 2027.
RegulationMay 9, 2026
European Parliament ECON Committee Clears PSD3 and PSR with Overwhelming Majorities
The approval sends both texts to plenary for a final simple-majority vote expected later in May, with Official Journal publication anticipated by September 2026 at the latest, starting the 18-month countdown to PSR application and PSD3 transposition.
AnalysisMay 9, 2026
Luxembourg Faces Europe's First Hard Payconiq-to-Wero Cutover with Three-Month Transition Window
Luxembourg will execute a complete domestic scheme replacement when Wero launches in July 2026 and Payconiq is permanently discontinued three months later, creating the first hard cutover test for EPI's payment scheme migration capability in a market of approximately 900,000 compatible bank accounts.
NewsMay 8, 2026
Hectronic Integrates Wero QR Payments at European Charging Stations and Parking Machines
Hectronic is among the first mobility technology providers to embed Wero payments into physical infrastructure. Live operations will launch shortly, with fuel retail integration planned as a subsequent phase.
RegulationMay 7, 2026
PSD3 and PSR Clear EU Council as COREPER Endorses Final Texts
The final legislative texts for the EU payment services overhaul passed a key Council hurdle on April 22, 2026, with parliamentary committee and plenary votes expected in May. Official Journal publication is targeted for mid-2026, starting the 18-month clock for PSR general application.
AnalysisMay 2, 2026
European Batch Credit Transfer Volumes Decline as Post-IPR Instant Migration Accelerates
STEP2 SCT batch credit transfer daily averages fell approximately 5% year-on-year in Q1 2026. TIPS EUR instant payment volumes surged 153% from January 2025 levels. The post-IPR structural shift from batch to instant clearing is producing measurably different outcomes across eurozone countries.
NewsMay 1, 2026
EPI Pledges to Replace Non-European Infrastructure Underpinning Wero
Wero's operator acknowledged the payment platform still uses non-European technology in parts of its infrastructure and outlined plans for a gradual transition to domestic providers, noting that user data is already stored in encrypted European data centers.
Reference Documents (2)
TARGET Operating Schedule
ECB · operating_schedule · v2026 · Jan 1, 2026
CBPR+ Roadmap Beyond November 2025
SWIFT · regulatory_text · vSeptember 2025 · Nov 15, 2026
SEPA Credit TransferSCT
European Payments Council (EPC)
SEPA Direct Debit CoreSDD Core
European Payments Council (EPC)
SEPA Direct Debit Business-to-BusinessSDD B2B
European Payments Council (EPC)
SEPA Instant Credit TransferSCT Inst
European Payments Council (EPC)
TARGET Ecosystem OverviewTARGET
Eurosystem (4CB platform: Deutsche Bundesbank, Banque de France, Banca d'Italia, Banco de España)
T2 (TARGET RTGS)T2
Eurosystem (4CB platform: Deutsche Bundesbank, Banque de France, Banca d'Italia, Banco de España)
TARGET2-SecuritiesT2S
Eurosystem (4CB platform)
Eurosystem Collateral Management SystemECMS
Eurosystem (Banque de France lead development)
UK Payment InfrastructureUK Payments
Pay.UK (scheme management), Bank of England (RTGS), VocaLink/Mastercard (processing)